104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour. Below are production schedules for a firm showing the possible combinations of capital and labor that will produce 100 units of output. Which combination will this cost-minimizing firm choose? A) Labor: 20 B) Labor: 10 C) Labor: 5 D) Labor: 4 A. Choice A B. Choice B C. Choice C D. Choice D Capital: 5 Capital: 10 Capital: 20 Capital: 25 MPL: 5 MPL: 10 MPL: 20 MPL: 25 MPK: 20 MPK: 10 MPK: 5 MPK: 4
104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour. Below are production schedules for a firm showing the possible combinations of capital and labor that will produce 100 units of output. Which combination will this cost-minimizing firm choose? A) Labor: 20 B) Labor: 10 C) Labor: 5 D) Labor: 4 A. Choice A B. Choice B C. Choice C D. Choice D Capital: 5 Capital: 10 Capital: 20 Capital: 25 MPL: 5 MPL: 10 MPL: 20 MPL: 25 MPK: 20 MPK: 10 MPK: 5 MPK: 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour.
Below are production schedules for a firm showing the possible combinations of
capital and labor that will produce 100 units of output. Which combination will this
cost-minimizing firm choose?
A) Labor: 20
B) Labor: 10
C) Labor: 5
D) Labor: 4
A. Choice A
B. Choice B
C. Choice C
D. Choice D
Capital: 5
Capital: 10
Capital: 20
Capital: 25
MPL: 5
MPL: 10
MPL: 20
MPL: 25
MPK: 20
MPK: 10
MPK: 5
MPK: 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19823816-49f0-4b51-84d8-cde506458b1a%2F2f09f27c-19cc-4e13-9e93-6b3626a5ce60%2Fvs3zhcj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:104. The price of capital is $12 per machine-hour and the price of labor is $3 per hour.
Below are production schedules for a firm showing the possible combinations of
capital and labor that will produce 100 units of output. Which combination will this
cost-minimizing firm choose?
A) Labor: 20
B) Labor: 10
C) Labor: 5
D) Labor: 4
A. Choice A
B. Choice B
C. Choice C
D. Choice D
Capital: 5
Capital: 10
Capital: 20
Capital: 25
MPL: 5
MPL: 10
MPL: 20
MPL: 25
MPK: 20
MPK: 10
MPK: 5
MPK: 4
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